Popular, Inc. (Nasdaq:BPOP) (“Popular”) announced today that Banco Popular de Puerto Rico (“Banco Popular”), its principal banking subsidiary, completed the previously announced sale of a portfolio of non-performing commercial and construction loans, and commercial and single-family real estate owned, with a combined unpaid principal balance on loans and appraised value of other real estate owned of approximately $995 million and book value of approximately $540 million to an entity majority owned by a joint venture between Caribbean Property Group LLC and certain affiliates of Perella Weinberg Partners’ Asset Based Value Strategy. As part of the transaction, Banco Popular will acquire a 24.9% equity interest in the purchasing entity.
The purchase price for the assets was approximately $338 million, or 34% of the sum of the unpaid principal balance of the loans and the appraised value of the other real estate owned as of the agreed cut-off date, adjusted for certain collections and advances.
As previously announced, the transaction will significantly reduce Popular’s non-performing assets and credit-related expenses. The transaction is expected to result in an after-tax loss of approximately $179 million, which will be recognized in the first quarter of 2013.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts